What Is Fair Trade?
Fair Trade is a program that aims to promote sustainable and equitable trade relationships between producers in developing countries and buyers in developed countries. It focuses on commodities and products typically exported from developing countries to developed countries. Fair Trade certification is available for producers, manufacturers, processors, and exporters.
The program's core goals are to:
- Empower farmers and workers
- Improve living standards
- Promote fair remuneration
- Enhance traceability
- Support community development
The Fairtrade premium is a key tool in achieving these goals. It’s an additional amount paid on top of the agreed Fairtrade price, which is decided by an independent body of producers. This premium is used to fund welfare projects, such as:
- Healthcare
- Education
- Farm improvements
Fair Trade certification offers rigorous social and environmental guarantees, making it attractive to retailers and buyers. The program is non-profit, founded in 1997, and has 22 member organizations, including producer networks and national Fairtrade organizations. Fairtrade International coordinates activities and owns the FAIRTRADE Mark, which appears on over 30,000 products.
The benefits of Fairtrade certification include:
- Added advantage of Fairtrade label on products
- Fairtrade Certificate valid for 3 years
- Stronger relationships with customers
- New business opportunities from international retailers
- Funds for community enrichment projects
- Improved social performance
- Enhanced ethical trading program
- Part of Fair Trade movement
- Improved traceability
- Globally accepted standard
- Attraction and retention of customers
- Consistent outcomes, measured and monitored
- Acceptable for International organizations
The Fair Trade certification process involves:
- Gap analysis and report discussion
- Implementation of required changes
- Audit conducted by an authorized auditing agency
- Fair Trade label issuance
- Audit to verify compliance (after 9 months for producers, immediately for manufacturers)
- Certificate issuance (valid for 3 years)
- Yearly surveillance audits (2 audits in 3 years)
- Re-audit after 3 years to continue certification
Cost of Fairtrade certification
The cost of Fairtrade certification varies depending on the organization’s size and complexity.
